This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Hated Earnings Stocks That You Should Love

Select Comfort

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

My first earnings short-squeeze play is bed manufacturer and retailer Select Comfort ( SCSS), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Select Comfort to report revenue of $277.47 million on earnings of 43 cents per share.

The current short interest as a percentage of the float Select Comfort is extremely high at 18.2%. That means that out of the 53.98 million shares in the tradable float, 9.82 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 32.7%, or by about 2.41 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of SCSS could easily explode to the upside post-earnings as the shorts rush to cover some of their bets.

>>5 Big Stocks to Trade for Big Gains

From a technical perspective, SCSS is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways inside of a consolidation pattern for the last month and change, with shares moving between $23.81 on the downside and $26.47 on the upside. Any high-volume move above the upper-end of its recent range post-earnings could trigger a big breakout trade for shares of SCSS.

If you're bullish on SCSS, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $26.47 to $27.84 a share and then once it clear some past resistance at $28.94 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.15 million shares. If that breakout hits, then SCSS will set up to re-test or possibly take out its next major overhead resistance levels at $34.38 to $35.60 a share.

I would simply avoid SCSS or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average at $24.01 a share to its 200-day moving average at $22.75 a share with high volume. If we get that move, then SCSS will set up to re-test or possibly take out its next major support levels at $20.48 to $18 a share.
2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
DPZ $108.68 -0.43%
MTG $9.48 -1.00%
SNDK $74.59 0.13%
SCSS $24.44 -0.53%
UMPQ $17.83 -0.06%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs